Property development finance in Nottingham
Overview of the property
Nottingham is one of the major cities in the East Midlands and the seventh largest urban area in the UK. It ranks in size between Liverpool and Sheffield and is renowned for its links with the heroic outlaw, Robin Hood. But it’s not only this legend that shared its riches. The growing development finance landscape means there’s huge potential for property developers in Nottingham who can make some great gains from this historical city.
According to the UK House Price Index, house prices – in line with the rest of the UK – continue to rise, averaging at £198,821 (a 10.7% growth rate since April 2020).
The Government’s Core Strategy and Land and Planning Policies Doc Jan 2020 requires the provision of 17,150 homes in Nottingham city up to 2028. This will be a mix of housing including family, affordable, specialist and student accommodation, ensuring a range of good quality homes in appropriate locations.
Nottingham house prices in maps and graphs shows the most expensive properties are in the city centre. On a wider scale, Nottingham property prices average at around £138,440, lower than house prices in other cities such as London, Cardiff and Oxford. Although Nottingham has low prices, its increasing rental costs means those who purchase property in Nottingham can expect yields of 4.46% on average.
The ‘race for space’ has been the undeniable headline of the past 12 months, but as lockdown eases, many buyers have expressed a yearning for the social elements they forfeited over the past year. The appeal of living in a city centre appears to be on the up and Rightmove reports greater demand from younger first-time buyers (up 39% – Jan 2021 to April 2021) keen to live in urban areas.
Nottingham’s major strength is in its past capital growth and future long-term yield growth (JLL says it’s set to be one of the strongest in the country). Over 52% of the population lives in rented accommodation and with two major UK universities located relatively close to the city centre, there’s a huge amount of tenant demand. Demand for Purpose Built Student Accommodation is expected to increase by 28% in the next few years.
The city is also home to Queens Medical Centre – a ‘super hospital’ in the region and one of the largest teaching hospitals in the country, with over 6,000 medical staff.
Nottingham City Council’s Plan 2019 – 2023 shows what improvements are underway. A key objective is to build 4000 new homes (including eco homes) of which 1000 will be council or social homes for rent, and the council pledges to develop at least 500,000 square feet of Grade A office space to encourage inward investment.
In addition, the Council plans to dramatically transform and regenerate the Broadmarsh area of the city centre. A £250 million programme of works is underway to transform the southern part with improved shopping, leisure and restaurant facilities, a new car park and bus station, central library and Nottingham College City Hub. The castle visitor experience has also been upgraded, following a £31 million, three-year development and conservation project.
Along the northern banks of the River Trent, the Trent Bridge Quays waterside development includes 95 new townhouses and apartments and Nottingham-based ALB Group has submitted plans for a landmark mixed-use development proposal. If approved, designs for the 100-apartment scheme include planting initiatives, living walls on balconies/terraces and roof solar panels, enhancing the site’s ecological value.
Guildhall Place is a 2.4 acre mixed-use redevelopment site in a prime city location with a commercial block providing up to 100,000sqft of grade A office accommodation, rarely found outside London.
Nottingham Science Park has a range of accommodation types and sizes; from small office/workspace suites (270 sq ft) to office spaces between 2,227 and 6,125 sq. ft.
There are more than 7,600 student units under construction or in the planning process and according to UrbInfo Nottingham 47 developments could be built in Nottingham and the surrounding areas of Beeston and West Bridgford within the next three years.
Other developments across the city include private residential schemes, with apartments and new homes in London Road, Queens Road, Traffic Street and the Lace Market.
New homes in Arkwright Walk and Arkwright Street are transforming part of The Meadows, while new offices in Station Street are underway near new student accommodation. Heritage-led improvements are happening in Station Street, Carrington Street, in and around the Old Market Square and Lace Market.
Within the City Centre, the focus for regeneration is on city centre quarters:In the southern side there’s a £650m plan to regenerate the derelict site of ‘Boots Island’ (renamed Island Quarter). Developers Conygar received outline planning permission in April 2019. The initial stage includes a three-storey pavilion on the canal with two restaurants, events space and a large rooftop terrace.
In the eastern side there’s the nationally-recognised Confetti Institute for Creative Technology, Antenna (a co-working facility for the creative community) and Metronome (a 400-capacity live performance venue. Nottingham Trent University’s campus is increasingly attractive to PBSA developers and the area also appeals to investors in build-to-rent and other residential schemes, such as the Fruit Market development by Blueprint.
The Creative Quarter in the centre supports creative and digital businesses and is described as a great place to learn, work and live. The city’s growth plan says ‘the area has become home to a growing concentration of businesses specialising in important emerging industries: digital content, life sciences and clean technology. With the right support and stimulus, these industries can grow…’.
Outside the city centre there are brownfield sites suitable for varying use. Collectively all areas are expected to make a significant contribution to Nottingham’s economic and social transformation.
HS2 connects Nottingham to other cities, reducing journey times (reaching London in less than an hour), and will create 10,000 jobs through the creation of an innovation campus around Nottinghamshire HS2 station.
Opportunities for developers in Nottingham
Innes England is selling 24 acres of former agricultural land and surplus university estate at Clifton, which has outline planning consent for housing. The site is around five miles south west of the city centre and co-owned by the university and city council.
It’s clear Nottingham’s growth plans offer huge potential for property developers. Described as a place ‘where growth happens’, the city has a strong reputation for life sciences, financial services, logistics, retail, digital content (creative quarter) and advanced manufacturing.
How to finance property development in Nottingham
At Brickflow, we can help you easily access development finance. It’s a great time to be a property developer, and while sourcing development finance has historically been a key barrier to success for SME developers, this is no longer the case.
To find out how to finance property development in Nottingham, check out our Smart Guide to Development Finance.
Probably the best development finance rates in the UK
We’ve done the legwork for you and with nearly 30 lenders plugged into our platform, (more than half the UK development finance sector) we connect borrowers and lenders in seconds. Here’s our latest list of trusted lenders.
A single onboarding process and online tools enable you to build your profile and showcase your experience and projects, ensuring information is only sent to lenders that match your requirements. And our unique technology automatically filters out enquiries that do not meet lenders’ criteria.
This coupled with our consistent information format prompts quick decision-making, and such is our confidence in Brickflow, we’ll go as far to say we can offer ‘probably the best development finance rates in the UK’.
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